me they're still in talks with several possible investors, including some in asia. after the story went viral over the weekend, they've been barraged by inquiries for people that want to buy homes or operate companies on the ship. a chief marketing officer told me there's a 25% chance they'll get funding. not looking clear. unclear how it would be with taxes but not registered in the united states. >> thank you. we'll see you tomorrow. >> i'll see you tonight on "fast." "closing bell" is up next. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. we need an 11-point gain on the dow to hit an all-time high. >> we won't get it. >> i don't think so. >> we're 50 points away. >> anything's possible. >> the s&p 500 looks a little better. barely positive, if it closed higher it will be a couple points shy of an all-time high

of its own. >> we have a lot of stories to get to this cyber money. have you bought something online today? fess up. >> there was a browser open to lord&taylor open when i got back. >> just happened to be. >> it wasn't me. someone upstairs was looking around. >> they were among the other 3100 people expected to buy something online today. we're tracking real time cyber monday numbers from ibm. we'll look at retail stocks that could be the biggest winners from this holiday season. >> that's right. amazon, speaking of which, is channelling the ghost of christmas future as ceo sees drones delivering presents. how would he ever get government approval to use air space in this way? some d.c. insiders say he might have an ace up his sleeve. >> it's fascinating. you missed that report last night, but that is the jetsons coming for real here. to watch these drones. my question is, if i buy a drone from amazon does it deliver

itself? >> that would be a drone delivering a drone. like a 3-d printer that prints in 3-d. a nationwide strike has been called for this thursday, demanding minimum wage of $15 an hour. we'll be talking with one mcdonald's worker planning to go on that picket line. he currently makes less than half that amount at the mcdonald's he works at. >> $7:.25 is the federal wage. that's what he's earning. it's a doubling. dow down 40 points. record highs set on wednesday. the s&p a little bit firmer. just turning negative. the nasdaq pointed down by five point. 4,054 is the loechl right now. >> bias to the downside maybe by $600, $800 million. let's talk about this in our "closing bell" exchange.

renee norris from urban wealth management, dick from rnb capital management, steve rosen from highto youer and our own rick santelli joining us as well. renee, you say why not take profits here if you have a high flyer in your portfolio, right? >> absolutely. absolutely, bill. at this point as we head into 20 14, that will keep people on target to be buying low, selling high. >> at the same time i want to put up on the screen if we can, something bank of america made a point about earlier today. it's that bearishness on wall street, on the sell side, which is typically seen as the most bullish out there. it's at its highest level since march 2009. >> really? >> in other words, wall street a lot of asset managers are still underweighting equities relative to what they used to over the past decade. i get the sense, looking through your notes, are you on the same page. saying you're not getting into the market. if anything, you'll pare back

exposure into 2014. is that right? >> we do. we think we had an excellent run. we are constructive on equities, but at high tower-bethesda, we feel we can take money off the equity table right now. you can keep yourself exposed by using long/short mutual funds or hedge funds, give yourself the ability to reduce volatility but still put yourself in position to get some good upside should the markets continue higher. >> i see a trend here with our guests today. dick, you say 10% correction. that would be welcome because you would use it as an opportunity to buy, right? >> i would agree i wouldn't want to be overinvested in u.s. equities right now but our outlook is positive for the u.s. equity markets. we think before this market peaks you'll see valuations up 15% to 20% from where they are today. we also expect we'll get the benefit of earnings growth maybe better than expected earnings growth in 2014 and '15.

lastly, rather than move money out of equities we would simply shift more of our equity allocation to things like japanese equities and small cap europe. we think equities are trading at below normal valuations on way below normal earnings. there's a lot of leverage there for people to shift into europe and japan. >> what are you doing with regard to the u.s. market at these levels? >> the only change in our u.s. market outlook is we wouldn't want to be overexposed to u.s. we can it's equities into developed international, but we wouldn't want to move that money into something like bonds or cash where we expect in the case of fixed income, the bond market is likely to produce negative returns in 2014. that environment for fixed income market could last a long time. >> do you sense the market getting ready for the fed

meeting later this month? maybe taper talk at that point? much of the same we've gotten in the past few months? what's going on with the market there? >> with a lame duck fed chairman, i don't think there's a chance, not even a remote chance, this meeting coming up in december is going to show us anything we don't already know or make more clear what is impossible to make clear and that, of course, is when janet yellen takes the reins and when she will rein in programs. if you wanted to participate in three or six-month bill auction, here's what you saw on the website of treasury direct. basically gone fishing. traders say whatever the glitch was, hats off to them for not just rolling the dice and seeing if it went okay. we know that other parts of the government seem to have that tactic. as far as interest rates --

>> what -- >> go on. >> what is it with government websites? >> it's unbelievable. i'm so glad we're not listening to potentially drones delivering the mail because i can only imagine how well that would work out. i do see a 280 yield on the tens. we haven't had one since the 209 of november. if you open the chart up a bit, it certainly looks like it will be in the cards thursday or friday. when it comes to foreign currency, no currency is more unloved than the japanese yen. >> if you're cautious on u.s. he can he witequities, i'm sure you have a lot of clients shaking their heads saying how do i see the returns i've seen for 2013 next year? >> there's actually a few places, kelly. i think here in the united states we still have -- i believe we're in the middle

inning of this bull market. we've had a lot of excesses to work off for that ten-year period of time between 2000 and 2009. for the first four years people were wondering, is this real? now that we've got confirmation, there are areas we're looking at. i think health care is a great place to be. financial, regionals big asset managers, investment banking group. we've had a bumper crop of ipos this year. a lot of companies issuing bonds at record low interest rates. we also have tremendous amount in the energy sector as well. there are still pockets in this market. outside the u.s. i would definitely be looking at in the fixed income arena emerging market debt that is dollar denominated. you can get returns of 6% or 7%.

and good yields there. internationally, european market, and looking back at equities, i would be looking at latin america and mexico in particular. >> steven rose, what's your thought on the fed? would you keep going with this market as long as the fed keeps pumping $85 million -- janet yellen doesn't take the reins -- her first meeting isn't until march. if we believe the fed won't do anything until she takes the chairmanship of the fed, are we clear in this market until march, do you think? >> i think we're somewhat clear but there's risk on the table. every single time we have a significant discussion about tapering, we see the market sell off. we're at all-time highs. i don't think there's anything wrong with investors taking money off the table as long as you can find places to put it in. that's why we're big fans of taking profits in equities, long/short hedge fund route.

on the fixed income side we've pared back -- as rick said whether it's 3%, 4% 4.5% at the end of next year we know it's going higher. we're trying to find ways to manage money manage rivengs recognizing where we've been and where we are right now. >> dick, just in a word because we've got to go, but there are people looking at the fact that the multiple on the s&p 500 has gone from 13 to 15 over the last couple of years. we're hearing bubble talk. you say dismiss it at these levels but what multiple would you say, yes, markets are too frothy? >> almost every bull market since world war ii has peaked at premium valuations. those valuations on forward earnings have been 20 plus. so, there is -- there is significant room left for this market to move up. i don't dispute the idea that we're going to have corrections. and i think more frequently. and sharper corrections but

great buying opportunities. >> thanks. appreciate it. have a good one. we have about 50 minutes to go to the closing bell. the dow is off 44 points. again, it's going to be a tough climb to reclaim those highs we saw last wednesday. >> we need an 11-point gain on the high to be an all-time high. there's been some disapointment in some circles about this past weekend's sales figure. more people shopped but spent less money. how are retail stocks? are there any better buys? online shoppers taking a bite out of sales at brick and mortar establishments. will this force more retailers to abandon those stores and go online only route? >> it sounds like something from an episode of the jetsons. we've gone to the black and white version. amazon wants to deliver packages by drone, maybe in four or five years. but will regulations end up grounding in revolutionary idea

or is there a plan for that as well? that's coming up on the "closing bell." hi honey, did you get the toaster cozy? yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping th the reliability of fedex.

back over to you back over to you guys? >> dom thanks very much. which are shaping up to be the best retail winners and which are the losers this holiday season? joining us camilla and ross gerber. thank you for joining us. we were at the mall on friday, a mall. anecdotally we noticed certain stores were doing a lot better than others here. who do you think were the winners on what -- the numbers we got more shoppers but they spent less than they did last year. who were the winners here, do you think? >> interestingly, we i think the winners were the ones with the stronger brands that promoted less. it was fraught from promotion from store to store. it was companies like lulu michael kors, deckers who carries the ugg brand. they were the winners and they promoted a lot less than the other mall and retailers. >> my heckles are going up.

let me disentangle this. so there's a difference between those retailers that are strong enough they don't have to discount and the names you're citing along with, by the way we saw tiffany hermes the luxury guys. >> they did nothing. >> the ones from the middle market were the ones that weren't quite aggressive. a clear winner seemed to be gap brands, with the 40%, 50% signs out front. isn't it fair to separate these two themes? >> well, you know, that's another astute point. we noticed that as well. what it ultimately comes down to, who was able to preserve gross margin the best. lulu doesn't traditionally held back black friday sales but they this year smartly held back inventory that would be on the floor, to put it on the floor to

give customers to come in and peruse the discount racks. >> my take was, they had more people shopping, 141 million, the number from the national retail federation but they spent less because of all the discounting. ross, what about you? >> i don't agree with this assessment at all here. the truth of the matter s people go to the mall now and they don't necessarily buy things when they go. they go home and buy it online. certainly my wife loves going to the mall but the bottom line s she's online right now probably buying all the stuff she saw that she liked. so i don't think, per se, people are spending less. they're just spending less actually physically buying things. quite frankly, i hate the mall, but i've gone online and i've shopped. i think when you really look at consumer behavior, if you look at a store like the apple store, we go in, touch things, see things -- >> ross what do you disagree with? what is it that he just laid

out, in other words, you should stick with people who don't have to discount, who aren't going to be under the gross margin pressure, which part are you quibbling with? >> first of all, everybody likes a discount a sale. even if it's the perception of the sale. you can't go into the black friday weekend and not have a sale. that's the dumbest thing i've ever heard. >> which is -- what is exactly why lulu had something on sale. but it's how they managed -- >> but is lulu doing so great? i don't think they're doing so great right now. i think they have a lot of competition. i think nike is doing well. >> you like a nik y ross? who else do you like here and why? >> well i like nike and i like gamestop. bottom line, video games is what most people want. truth of the matter, what you buy is mostly for kids anyway. we buy for ourselves but most adults we like clothes and simpler things to buy. kids, they want video games right now. the new xbox is phenomenal, the

new games are amazing. you can't get an xbox which is why ebay was upgraded because they're making a ton of xbox and playstation 4 -- >> yeah. >> it's a great opportunity. >> let mow throw one in from left field. which store had the longest lines that we saw at the mall on friday? who did we see? >> i know the answer. camillo, i wonder if you have a theory. >> it was out the door. this store had lines out the door at the mall on friday. any guess? >> i heard old navy. >> it was starbucks. >> yeah, another good pick. >> right? >> totally. >> everybody went there whether they're buying something or going home to buy online. everybody gets their cup of coffee. >> they have a lot of good gifts, too. starbucks expanded retail nicely. it's a great buy and great gift to buy, too.

>> to go back to some of the retailers at least in terms of traffic and getting people through the door gap brands was successful if you look at their banana, old navy i'm not sure about that one, but what do you recommend aside from the lulus of the world who didn't have to go that route at all do you like any other mass market names? >> the names we're focusing in are the names in the athletic space. the athletic manufacturers, like underarmor and nike, have been innovating at a pace that's been unmatched by the gaps, the chicos abercrombies, the teen space. that's something they can't compete with and resulted in share loss. consequently, that's why they have to discount at 50% off the entire day. they need to entice the consumer to go into their stores and buy what they're selling. that's why under armour hadn't. we like the theme we're

promoting. >> good to see you. appreciate your thoughts. ross, say hi to your wife for us when she -- >> i got to get her off line. headed to the close. dow down 4 2 points. the bias is definitely the downside. art cashin keeps coming by to tell us how much stock is for sale right now. it's about 600 million, $400 million worth right now. >> remember that sharp selloff into the close on friday. people dismissed it but a little more selling pressure today. delivery in 30 minutes? >> you know what occurs to me pizzas weigh less than five pounds. that's perfect. >> maybe domino's will get in on the action first. we're talking about amazon delivering packages, yes, by drones. that's coming up. >> i love that part of the story. later, find out why history says, if you have any cash right now, it might not be a bad idea to bet on a big year-end santa claus rally.

that's still to come on "closing bell."

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it has been all the buzz today. it has been all the buzz today. amazon founder jeff baesz saying amazon is developing a drone delivery system.

e-mail >> faa is in charge of writing rules and regulation to turn that sign fiction vision into practical reality here in the united states. there's a lot of hurdles here to overcome in terms of meshing auto ton autonomous delivery helicopters. here's what the faa has said. unmanned aircraft system integration must be accomplished without reducing existing capacity decreasing safety impacting current operators or placing other air space users or persons and property on the ground at increased risk. they say they see a much broader range than just delivering packages or pizzas. faa is considering security applications disaster response applications news and sport

event coverage. i would love to get into on that for cnbc, if we could get a drone of our own in the air. cargo transport, monitoring infrastructure, ports, pipelines, commercial photography, mapping and advertising. i talked to a couple of experts in this field and they say amazon might want to go to the u.s. marine corps for advice how to do this because the marines are operating a robotic system in afghanistan called the k-max. it has the capability of delivering 5,000 pounds of equipment to marines in the field. they're using it. they've had a lot of crashes but they have experience using this in the reeld world in the way amazon is hoping to do it. >> most surprising is the fact this technology really is already here. >> i just love this. >> it's here. and the marines are using it. they'll have some advice for amazon on how to use it the weak spots, the danger points. they might have data already on the crashes.

that's going to be so key to this, is safety, making sure they don't fall out of the sky or hit other aircraft or other drones. imagine fedex drones crashing into amazon drones trying to get packages to us. >> stay with us, if you will. we want to bring in james white, d.c. insiders with perspective on how this may be playing inside the beltway. if jeff bezos can leverage his pull in washington. >> i don't think he'll run pro-drone advertisement. whether that comes to play in the debate, not over the safety of the drones but private issues.

ed markey has a bill dealing with the prooicy of these drones. if they're flying to your house to deliver a pizza can they look inside and see what car you like? what information retailers or am sdmron would like does "the washington post" cover that as strongly with bezos? the other question is not just running editorials or op-eds, you have power with politicians, they want to be on your good side. what extent do those privacy issues get covered the same way. it's also cia contracts. a range of issues dealing with amazon, privacy and drones that washington has a big role in. >> jimmy, this is not an endorsement of amazon. i don't own shares or anything like that. but i think jeff bezos is the smartest guy on the planet. he's the new steve jobs right now. do you think he'll run afoul of the federal government if he tries to get some regulation changes to allow this amazing drone delivery system he's got in his head?

>>. >> influence congress and influence faa. that is tremendous consumer enthusiasm and demand for this technology. to the extent "the washington post" can be a part that would help. but he should have bought io9 and boing boing. to get people hyped up. that will change it. >> or politico. >> i knew ben would say that. >> to go to the question, this is almost less about amazon than the question of drone usage generally, which it sounds like could be just around the corner if regulation doesn't get in the way. ben, to what extent is there going to be pushback from d.c.? what kind of skut anycrutiny can we expect in the next few years? >> as eamon mentioned, the faa is drowning these rules up gets them done around 2015. doesn't sound like they'll stay in the way.

sounds like they're pro-drone. first indications is that they would not block it. you'll get lobbying from privacy types and in the era of nsa domestic surveillance -- >> you're so dismisses ive of privacy types. these are huge concerns. >> no, i'm not. just because i say type -- >> he wants his pizza at his door step. he doesn't care if they look in the window when they come? >> i don't want them necessarily looking in my window or license plate on my car. i think that will be increasing over the next couple of years. i think right now you're seeing a has a fair approach. >> eamon, i'm curious, how did "the washington post" treat the "60 minutes" interview jeff bezos gave last night? above the fold?

>> was at any time above the fold on page a-6, and covered it online. they had some blog posts. when you're covering your own corporate or individual parent, that's tricky for a media organization as it was by anybody owned by a large corporation. i would say the faa in this case is probably going to start small, even with this enormous push by amazon. experts a they're likely to start with the smallest possible drones, smallest size, and work their way up gradually. they might hit regulations in 2015 or '56 -- '16 gradual release process. >> i would guess the technology will be auto ton mouse cars. it's coming. drones are coming. airplanes are coming. >> i want to know how to opt out. i think a lot of people will be asking about that. >> i want a football drone to cover the redskins games for me so i don't have to go and witness that terrible --

>> it's all coming, too, reporters, anchors. >> get a hot dog. >> take that knee brace off rg3 and he'll be fine. >> from your lips to god's ears. >> thank you guys. >> i cannot wait for all this to come. all this technology. >> that way you can do a lot more online shopping. >> kid in a candy st the dow is down 80 points. 16,007. just barely hanging on. the s&p 500 nasdaq losing steam as well, down 5 and 15 points respectively respectively. >> pulling back from record highs. american millionaires are losing confidence in this market. we'll explain why and where they are putting their money right now. now, they wouldn't be so nervous if they were listening to our next guest who says santa claus is coming to wall street and is going to deliver big returns to close out the year. yes, plenty more on the santa claus rally, which we're not seeing today anyway.

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markets heading south. the dow down 77 points. the bias has been to the downside in the last hour or so. art cashin telling us a lot of stock for sale as we get near the close. we're pulling back from all-time highs last week as we start the month of december. which is traditionally the best month for the dow. first we're learning more information now on just how far bernie madoff and his associates went to hide their fraud. scott cohn is covering the latest trial in this. he has incredible details for us. >> reporter: if you're going to false fi documents, have you to make sure they look authentic. the scam of the century collapsed in late 2008, almost

five years ago. he is talking for the first time about his experience in the trial of five former madoff employees. he's been talking about the lengths, as you said they would go to to hide the fraud. back in the late 1980s, kpmg the accounting firm was doing an audit on behalf of hsbc who had money with madoff. they wanted trade reports. you know most of the trades in the madoff operation were falsified. they didn't happen. they had to go up with something very quickly. a trade report for one specific day the auditor wanted and one day's trade report stood about three feet tall, de pass kelley said. he gets them to false fi the report and he finds them throwing it around like a medicine ball. what are you doing? he's told, well, they need to make it look used. and if they're going to use it, they say they need to make sure it doesn't seem like it's hot off the printer, so they actually took this three-foot tall trade report, put it in the

refrigerator and his office before they turned it over to auditors because bernie madoff didn't want anyone to know the trades were fictitious or his client list because then it would add up it was a fraud. he's the star witness in the form former madoff employees. it's expected to go on for months and dipaskali will be on the stand most of the month. >> sound like a "snl" skit. try this on for size -- both of our next guests say stocks are going to have a strong finish this year. you just need to believe in santa claus, at least the santa claus rally. what happens after that, you ask? >> joining us now, jeff hersh as well as gary goldberg. welcome to you both.

jeff, i think a lot of people talk about the santa claus rally as something in the run up to christmas. you say it really happens in the days after. >> yeah. it's something we discovered back in '72. it's the last five trading days of the year averages 17% on the s&p 500. friend did a study in the "the journal" back to 1986 better than any other seven day period of the year. >> eeb with the gains we've seen in the last 12 months, does that skew the possibility of this seasonal trend to happen this year? >> not necessarily. these gains have been quite seasonally, you know, expected as well. first half of december tends to be weak. i think after a couple weeks of softness here, we can get a santa claus rally get a small cap effect, a january effect. the important part other than the nice little gain can you get out of a santa claus rally is a phrase yale -- my father came up with if santa claus should fail

to call, bears use it to create a wall. >> interesting. oliver, this comes after this year, however the first trading da of month goes, so goes the rest of the month. we see how the markets are down sharply. are we to read too much into it? >> no. you want to be cautious and selective. i wouldn't be buying the s&p 500 or the dow, you know outright. i would be very selective. you guys have done some great reporting in the last few weeks about some tech names, some online names that have done very well over the weekend. we got some pretty good retail numbers. the fundamentals speak to a pretty good december right now, including all the technical components that jeffrey just talked about. the bottom line is this -- monetary policy is going to continue to be easy. earnings are going to continue to grow at a reasonable pace. and absence of inflation.

money will continue to pour into stocks. and i think you're going to see a pretty good december. >> just today robert schiller up at notre dame, who won the noble prize for calling the financial debacle, now he's calling it a bubble in equities. >> he's probably right. don't see the bubble popping until some time in mid-year, after the election after mud slinging starts and fed chairman shift. for the next couple of months, next few months q4/q1, great combination and juice by the feds quantitative easing. i think we rally up march april, may. >> just to quote from adam parker at morgan who's putting together his forecast says something like 6% to 8% earnings appreciation, maybe add 8 -- 3%

and a little multiple expansion. that doesn't sound terribly bubbly. >> i don't think we're in a bubble in the sense we're anything like the real estate bubble. i think you're probably somewhere around fairly valued for stocks across the board right now. the question is are earnings going to expand enough and you're going to get a little multiple expansion you talked about to drive stocks higher? we think another double digit gain in 2014 is possible but there will be more volatility. it won't be linear like we've seen over the last couple of years. bubbles happen but trading sideways gets rid of that bubble effect as well. it's not just a question that has to blow up on you. >> these bubbles tend to expand a lot further and longer than anyone expects. i don't expect the kind of gains that oliver has, you know mentioned for 2014. i think we're ripe for a bit of a pullback. not the greatest down leg but i think with midterm election we

can find ourselves somewhere down 10%, 20%, somewhere from the highs in 2014. >> good to see you guys. thank you for your thoughts today. >> thank you. >> appreciate it. we are heading lower. dow was down 85 points a moment ago. that selling pressure that art cashin was identifying is very much in place here as we head toward the close with the dow just holding above 16,000. >> second trading day in a row as we've seen this pattern in the close. coming up, millionaires are feeling confident again but not necessarily in the stock market. we'll tell you where their money is going. the answer may surprise you. that's straight ahead. after the bell blockbuster was the biggest casualty of the digital revolution. but it could snow ball and get much bigger. we'll look at the future of retail and what other companies may be forced to lose their store fronts.

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welcome back. it may welcome back. it may not look like it now but the fifth straight session, the nasdaq touched a 13-year high. the question is whether it will close. doesn't look likely now. >> art cashin telling me the selling pressure is widening. seema mody has been tracking the nasdaq. what happened to the strength

there? >> given how far we've come this year with the nasdaq up 30%, have you some traders taking money off the table. with that said the nasdaq is firmly above 4,000, trading in a narrow range today, old school tech names like microsoft western digital posting gains. a slightly defensive tone to the market. while we have microsoft up, the doj did approve microsoft's plan acquisition of nokia's devices and services business. now it's awaiting approval from the european union. in terms of what's leading the tech index lower it's been another tough day for social media stocks. goldman stocks downgrading groupon. we're seeing high volatility in what the market likes to call momentum player. we'll keep an eye out on those names as money managers enter a period of window dressing that takes place the last couple of weeks of the year to continue to watch those stocks. >> seema thanks. a goldman downgrade on names so

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on? people doing tax planning before the end of the year? >> the people i talked to on the retail side are talking about not selling, trying to carry profits into next year. that's what we see on the retail side. my timing models that called for pullback, are calling for a pullback here. they say it's a go ahead time to be cautious. if you get a pullback i think it sets up the fabled santa claus rally like your previous guest -- >> what's going on bob? >> we have weakened going into the close the last couple of weeks. interest rate stocks are under pressure. ism is strong, setting up the possibility of a strong jobs report on friday. interest rate sensitive groups are getting hit hard housing, telecom is weak. this might be still about what the fed is doing, tapering becomes more likely on friday and that's bothering the market.

>> you think,fy read you correctly, the dips we've seen bought left and right this is another dip to buy? >> i don't think it's right right here, but further down if we break the 1760 area you could get a 5% 7% pullback like we got a 6% pull back this summer. >> we are falling below 16,000 on the dow and 1800 on the s&p. >> we've had an incredible year. the target at 1900 on the s&p next year. jeff parker, his cute numbers for next year. 2014 on the s&p pp. 2014 in 2014. you get it? >> he's not the only one, by the way. >> he's the most bullish i'm aware of on the street right now. >> jeff, thanks for joining us. we're coming back with the "closing countdown" and after the bell this will not happen

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coming into the market again. it's happened in the last half hour here. art cashin was telling us about the numbers of dollars of stock for sale going into the close. that has taken us lower here. we're just off the lows. down 90 points on the dow a moment ago and back to 16,000 on the dow. back below 1800 on the s&p. peter costa, we're told it's the smart money that trades in the last hour. like i said, the last few sessions starting to see selloffs here. >> i think some of that has to do with this trading platform a lot of people use. they trade during the day and at the end of the day they try to unwind it. that's what part of it is. we're getting toward the end of the year so you'll see some selloffs at the end of the year. where retail investors are back into it, institutional investors need to lighten up. >> makes for better quarterly statement. i was just talking to jeff a possibility some people thinking

tax implications, they want to take advantage of that. >> might be a little early for that. between the 15th and 30th you'll see a lot of that as well. during the end -- you know, going towards the end of the day, you'll see people unwinding a lot more. >> and yet seasonal tendency is this month, december, is usually the strongest month for the dow. we get that proverbial santa claus rally. >> we might still. i don't have any problem with us being up towards the end of the month, but right now a little pause. not a lot of volume on the tape. we'll probably see this a couple more times this week and next week. >> down 94. we were down 96 a few minutes ago. are you inclined to buy these dips yet? >> no. i'm already fully invested. in-f anything, i would lighten up. >> how much are you willing to withstand to the downside? >> 5%. 5% you'll see me out of a lot of stock. >> peter, thank you very much. coming off the low but it has been a late selloff again. something to keep an eye on as

we go into the month of december. that is the first hour of the "closing bell." thank you for joining us right now. stay tuned for hour number two with kelly evans and company. i'll see you tomorrow. you're watching the "closing bell." i'm kelly evans. disappointing black friday retail sales leading to red arrows on wall street. the dow looks to have shed 80 point. it did lose the 16,000 point but regained it in the final minutes of the close. red arrows across the board nasdaq down, s&p down. the dow took it on the chin. let's get straight to the panel today. joining me down here at the stock exchange, sharon epperson, dani hughes matthew mccormick.

good afternoon to all of you. we've seen a pretty sharp selloff, larry. what happened? what's going no. >> black friday is all about the fridays. what we've seen in a momentum-driving market is the bargains are better in the mall than wall street. i think in a momentum-driven market, anything can trigger it. we're worried about the jobs report. we're worried that could trigger a taper from the fed. i think we're seeing a little unease as people want to take profits ahead of that. it's reasonable to understand. conceivably the santa claus rally came and went with the thanksgiving weekend. >> you're shouting. we saw this going into the close, shortened trading week but people said don't think too much about it don't overanalyze it. as we wake up, as art cashin says fourth session in a row, and first trading day of the month, and that's set the tone for the rest of the month so far this year. what do you make of it? >> i get concerned when you see

volume to the end of the trade get weaker. i think it's about expectations as larry talked about. thanksgiving sales, some were good but some were underwhelming. people have had a strong run so it makes sense to take profits from high-flying names. >> are we seeing that in the retail space? >> it's been a little bit of a disappointment, as we've said and we've seen that in the retail stocks themselves. i think we'll see more of that. i think people have had a phenomenal -- >> what do you mean a big month for stock selling? >> it's time to take profit. nobody knows what's going to happen in january, the first quarter. the fed might decide to taper. they might decide to taper this month as well. that's on the table. i think people are concerned about that. when they have so much they've made, they say let me take a little off the table. >> sharon this typically -- we were sauking to jeff et cetera,

it's supposed to be a better month, at least a better period for the market. we're coming off a year where it's been smooth sailing generally speaking. it's your sector commodities, gold that's taking it on the chin. >> it's not just smooth sailing. it's skyrocketing. that's what we've seen for the last 18 months. seeing a pullback makes sense. especially when you do what i did, call your tax adviser and say, am i making the right move? what should i be doing? they'll tell you you want to offset the losses -- the gains with the losses. we're seeing it with gold for sure. >> what were you invested in that you were harvesting losses? it's been a pretty strong rally in the stock market for most parts? >> i'm in good shape but i do have to double-check myself. what we saw in the gold market -- if you looked at the ldl versus equity markets you'll see an absolute divergent of

those two markets. it's time to take some losses and offset them against the gains. >> certainly people will probably be doing that right? any losses they might have had in the market the last couple of years are kind of gone now. that behavior is going to diminish. maybe it's going to pick up for a lot of people who came into this year thinking the fed's going to be in the game so i'm going to buy gold commodities. that's been a terrible move. >> absolutely. december is about window dressing. momentum stocks have been driving the market. ist also about tax loss selling. the flipside creates opportunity selling. gold commodities, emerging markets those are the few areas you do have losses. be mindful of the fact that creates a january opportunity. perhaps investors should be rotating out of leadership into the laggards to make money. >> this is an interesting point. is perhaps what we're seeing a rotation out of the market.

people have said it's 11 great months. maybe i can go into unloved sectors. what do you think? >> i think there could be rotation. i think when you look at people paying sky high premiums, even though amazon has a drone, 1250 trailing pe. that's expensive in my book. great company but i think people are looking at valuations quality and maybe looking at dividends saying hey, why not take cream off the top. go to something cheaper higher quality, better balance sheet strength and prepare for next year which could be a bumpier ride than most people expect. >> if that were the case gold did not get a bid today. gold had a bad day. >> gold definitely had a bad day. i think there are some people, like larry said, that will wait and in january they'll enter the market again. everybody wants some protection in their portfolio regardless of where gold goes. but still those are saying this is the time i have to figure out what has been a loser, if they have some gold in their portfolio, that's where they'll

sell. >> and a lot of money on the sidelines still. that great rotation we've been waiting for, out of bond, into the market, it's just starting to happen. i would also say a lot of that money has gone into alternatives as well. we're not seeing that coming into the stock market. i have have talked to a lot of our clients and many are waiting for the pullback that still has not come. i think you'll see a lot of participation if the stock market does come down considerably, you'll see a lot of players come back in. >> let's get a little more info from steve grasso coming off the close, joining us from the floor of the exchange. what are your thoughts about what's happening into the close? >> i think you'll see a lot of people taking profit, that's expected. the truth is no one has any clue how low we can get from there. everyone is constantly buying the dips. you can't time it perfectly. the long-term investors winds up staying long in these investor

moves. >> i'm thinking through this for a second. should i look at this steve, as potentially a warning sign that there's going to be more trouble ahead? look, we've seen what a 15% increase in the vix over the last ten trading sessions? if you wanted to put together a case about rockier times over the next couple weeks, you'd make the case. >> you could definitely make the case. going into year end, everyone expected the market -- everyone was looking for that correction. whether it be 5 % or 10%. it never happened. now everyone's starting to just say, let me throw in the towel and buy it. that's where you sort of get a little nervous where everyone throws in the towel and says, okay, i'm on board. personally for me, i wound up selling my google position. i'm waiting for a pull back in the overall market to buy that on a dip. i am bargain hunting but majority long this market. >> larry? >> we're up eight weeks in a row. as dirty harry said do you feel lucky? that's what you have to say. it's the best in a decade. we haven't had a correction in two years.

momentum ultimately rolls over. i think this is the first we're seeing of that. doesn't mean there aren't opportunities but you have to look elsewhere. >> larry? >> i agree. you've had a great run. don't press your luck. >> steve real quick. how much did you pay for google? where did you get in? >> i was sub 900 in google so i had an incredible pop so i sold around 1,020 or so and then traded down. i was looking underneath $1,000. i got close on that pullback but couldn't get it. i am a "fast money" trader so i'm looking for ins and outs. you can't turn around a ship of billions of dollars the way i turn around personal money. >> i wondered how indicative that is of the general behavior we're seeing here. if the bigger ships are turning at this point, if that's something we need to keep an eye out for. >> i would assume the bigger ships aren't turning. they might be curtailing a rally edge nipping and tucking going

into year end just to see what they want to have on their bladderblad blotters come the first of the year. i would say a large part of them are staying in this marketplace and a lot of retail investors should probably stay involved in the market. if they want to peel back take profits. no one ever went broke taking profits. >> before we let you go, put this -- i think it summarizes a lot of -- a lot of the conversation people are having. comes from bank of america. they're talking about bearishness among wall street when it comes to what they're doing with client money. people are actually generally underweight equities. the average port foal dwroe allocation according to their survey is 53%. well below the 65% average equity equity. >> kelly, if you have a print in the s&p of 666, you'll get a lot of guys that definitely don't

want to get rushed back in. i know it's been a couple of years, but they don't want to look at their 401(k) and be chopped in half again. >> but i think a lot of people are looking at their 401(k)s. they remember having seen the market go up and how much of a loss they took. now, they're looking at some of the profits they have on the table and they want to have some of that in cash, as dani mentioned, they want some protection there. they know cash is king and that's the best protection. >> but there's no growth in cash right now. unless we start to see rates increase. >> so much growth -- not everybody -- not everyone is super greedy. they want to make sure they can keep what they have. >> i'm not arguing your premise. my point is when you go to a cocktail party and everyone tells you they're up 20% or 30%, 15% even, you want to be involved in that. >> definitely. >> steve thank you, sir for the insight. good job on google, i guess. stick around and catch steve grasso coming up on "fast money"

at 5 p.m. s&p 500 up nearly 400 points this year alone. someone here sees it hitting 1900 by the end of next year. the 2014 outlook is next. blockbusters mena change? what does it moon for consumers. you don't want to miss that discussion. millionaires are feeling confident again but not necessarily in the stock market. this sounds familiar. wealth editor robert frank will tell us where and why they're plunking their riches.

welcome back to "closing bell." want to september it over to dominic chu. >> krispy kreme doughnuts falling in after-hours. investors are focusing on their outlook. they said fiscal 2013 in terms of profs will come in below some street expectations. shares down 10%, kel y in the after market. we'll keep an eye on those shares. back over to you. >> do they indicate where the softness is, just looking through the release? >> we're scouring for some signs right now.

this stock has been on an absolute tear. rising from the depths back to the financial crisis. people are starting to like this stock again. what we're concerned about is whether or not there is any perceived weakness in those particular results. remember, the stock is going to be pretty good as well. that's a pretty decent sign as well. i want to break in quickly with breaking news right now. we have some releases now from the federal reserve bank. the headline here is the federal reserve does not object to resubmitted capital plans from both jpmorgan and goldman sachs. basically that means both of these banks have made substantive enough changes to capital and risk management processes. fed asked both of these banks to resubmit plans for returning capital to shareholders via dividends and stock buybacks. the fed put those capital improvement plans in place to help prevent risks to the financial system just in case there's another economic

downturn. breaking news also from the fed side of things with regard to jpmorgan and goldman sachs. back over to you. >> doughnuts and making doughnuts. thank you, dom. those shares moving just a little higher after hours. the s&p 500, though bigger moves. up 26% already this year. will next year follow up such a great performance with equally positive numbers? bemo capital markets put their outlook, target on s&p, 1900 that's relative compared to others we've seen. brian belski joins us. thank you for joining us. >> thank you. >> the 1900 points, that's less than today. >> we have not been one of the johnny-come-lately-bulls. we've been bullish since fourth quarter of 2008. a lot other peers have become bull irn. last year's target on the s&p was 1425.

closed at 1426. this year he's -- >> in other words, you're taking a victory lap? >> no. sometimes i think investors need to hear one year of making correct calls because a lot of times people come on tv and throw a lot of numbers out there. but we have a track record we're proud of and it speaks volume of the business we've been able to do. >> let me put it this way. i looked at morgan's numbers earlier. they have a -- yes, intended 2014 price target for the end of next year. they get to it by 6% to 8% earnings growth 3% share buybacks, a little multiple expansion but how does that get them 100 point higher than you? >> i can't speak to their process. we run a four-prong model, regression, pe -- and means reversion model. our model has been pretty accurate the last few years. we haven't had to make a lot of changes. i'm not going to speak to swin else's process --

>> can you explain to us from the bottom up how are you building to that 1900? >> we look at four different modelses models, one is our dividend discount model, which has been extremely accurate. as risk premium continues to fall, the market will continue to go higher. however, we have a very differing view on how we get to 1900 in aggregate. we think the first half of the year will be much more bullish. by the way, we think the market peak will be well above 1900 in the first half of the year. we think ultimately tapering will the escape goet to the pullback. >> the taper. >> yes. and close at 1900. we could be significantly below 1900 in the third or fourth quarter and rally back up at the end of the year. >> stay right there. want to add another voice to the conversation, peter schiff, author of "why the economy grows and crashes." he's not as optimistic for next year either. walk us through what you expect

to see in 2014? >> i think if the fed does taper, the only way we'll get a rally is if they undo the taper and start doing more qe. i don't expect janet yellen to do any tapering at all. i continue her to talk about it but not do it. i think investors are underestimateding the severity of the problems that underlie the structure of the u.s. economy and the degree to which the fed is exacerbating those problems with qe. i think we'll get more qe but it's not that bullish but will preecht the bear market. i think it will cause investors to look oversees, the markets they've been ignoring as they trip over each other to buy u.s. >> we agree with part of it the tapering could be held off longer than most people think. this tapering situation will be all about the economy recovering

and, quite frankly, employment. we don't think we get a good picture on that until the end of the first quarter. with respect to growth elsewhere, we think that was the last cycle trade. the next cycle will be about cash and stability. the next was about credit and leverage. these emerging markets in europe will be deleveraging. the u.s. has already done that. we think the biggest surprise is the u.s. puts together another strong year in terms of positive performance relative to the rest of the world. >> in term of the stock market or gdp? >> i don't know how you say the u.s. is delevered. we have more debt than ever at the government level, the corporate level, the individual level. we are loaded up with debt. all this deleveraging is amiss. the only thing keeping us alive is zero interest rates in qe. >> if a lot of people gree or sympathize with the idea this all ends badly at some point that's different from saying it will end badly next year. what are your recommendations

for people who are looking with their portfolios at maximizing their return next year. >> hardly anybody agrees it's going to end badly. that's the problem. those that think it's going to end well, which is why they're making the mistakes they're making and ignoring buys things like gold. you mentioned gold is starting off the month lousy. it's been a lousy year for gold because so many investors incorrectly perceive a recovery that doesn't exist. they think we're deleveraging. >> 2014? >> we're more deleveraged than ever before. i think investors have to ignore what everybody is buying that doesn't understand the fundamentals and look to what everybody is overlooking. >> such as? >> well i mentioned in gold but i think you can be in some of these emerging markets or foreign stock markets that will benefit from the weakness that is going to come in the u.s. dollar. you know people are expecting the dollar to rally because they believe the fed is going to tighten, we have a rove when they wake up to the reality of a

faltering economy and more qe the dollar will weaken and undermine the phoney u.s. recovery because a weak dollar is going to put even more upward pressure on consumer prices. it will make it hard for the fed to pretend there's no inflation. it's requesting on put more pressure on the long end of the bond market. meaning the fed will have to print more money to keep interest rates from rising or let them rise. that's just going to add more problems to the economy. >> brian, a quick response? >> well, i would say that corporate balance sheets are the strongest since the 1950s. clearly corporate america is delevered. there's three legs, corporate america, consumer credit where they're cutting up credit cards and starting to delever. government is easy answer on deleverage but i would caution people to continue on the same cycle trend trade, what led us down this path 2010. it's not going to lead global markets. i would be worried about dipping

their toes in emerging markets -- >> emergeing markets have not been the leaders. >> it's a theme we have to come back to. 19 19 1900, there you have it, bmo's target for next year insure wealth editor robert franc will give us the latest on what they are investing in.

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welcome back. want to welcome back. want to get you new information on how fast that deadly commuter train was traveling yesterday morning when it derailed in new york. mary thompson joins us with details. >> reporter: the ntsb just completed a press briefing talking about the preliminary data that it's found in its ongoing investigation into that fatal crash on sunday, which killed four and, of course, injured 6 3. they say data taken from the black boxes on the rail car shows it was going 82 miles an hour going into a 30-mile-an-hour zone. of course, that 30-per-mile zone is a big bend when the train derailed. tillically it's going 70 mile an hour. the train speed was higher than normal. they said at this point it's hard to say whether it was human or mechanical error but they said there were a couple of mechanical findings they had. first of all, they aren't aware of any problems with the brakes but the data they retrieved

today did show six seconds before the train stopped the throttle went to idle. that's late in the game when you're trying to throttle down a train, to have it stop just six seconds before the train comes to a full stop. they say it's late in the game. same thing with the brake pressure, which went to zero five seconds before the stop of the lookcomotive. that's what they say again are late in the day. we heard they were going to speak with the engineer. they did speak with him today and that will continue the next couple of days. drug and alcohol testing has happened. they won't have the results of that for the next couple of days. >> that's exactly what i was going to ask. what information, if any about the status of the conductor. if he fell asleep, for example. it was very early in the morning on sunday. as has been the case in other incidents,there might have been texting involved. >> reporter: right. in that case they did retrieve his cell phone and doing

diagnosticics on that. it's too soon to say whether he was texting or engaged in some way with his cell phone at the time of the crash. as far as being asleep at the wheel, that will probably be determined if, indeed, that was the case as the investigation continues. >> 8 2 in a 30. mary thompson thank you very much for following that story for us all day. the mojo is back, at least sort of. millionaires are saying they're confident again. not about everything but our wealth editor robert frank joins us with some details on where the wealthy are and aren't confident these days. what can you tell us? >> the spectrum millionaire index shows millionaires reported their biggest increase in confidence in ten months. their month to month increase in assets biggest gains since 2007 but they're not confident about the stock market. a growing number saying they're not going to invest at all in the next 12 months and a declining number who say they're going to put money into stock and stock funds. where are they putting their money? real estate and cash.

what they're really doing now is looking for safety hard money they can hold on to in case things go bad next year, they'll have that money as dry powder to maybe bias sets. >> i want to bring in our panel briefly. it sounds to me like another contrarian indicator. >> it makes me nervous. >> nervous how? >> well, when you see people that there's a sense of euphoria, where you see these indices that -- >> wait a minute. he's saying the opposite. they're not confident in the stock market which is why i was joking saying it was a good point -- >> i look at it this way. where you see the index stock to increase, millionaire index is at high levels but a degree of skepticism it makes me feel you look, all is not well within the underpinnings of this market. believe me, i would love to see 2014 on the sbx but i can't make the mathd work. median income of the u.s.

lowest level since 1995. 1 percenters have it all and people underneath are struggling. i can't make both ends work to a higher stock market. >> that's absolutely for sure. sharon, i want your take on this. if millionaires aren't loving the market good or bad? >> millionaires aren't loving the market that's bad for everyone else because people follow what millionaires go. but they tell us they have a positive outlook about real estate. that's one area some individual investors need to think about more closely. it's not just this study but other studies, by fidelity stock market versus economy versus real estate or business spending, stock market comes lower on the list for millionaire investors. it's something to keep in mind. it's not just this one report. >> confirmed across a number of reports. robert frank thank you very much. for more on the market's final hour, fadeout, we'll have that segment coming up. that discussion on just what led to that selloff into the close

today, echoing a pattern we've seen over the last couple of sessions. click, shop, buy. on this cyber monday we're asking if brick and mortar stores are going the way of blockbuster video. what's that? surely people still know what blockbuster is. stick around because the iffy future of retail stores you have to drive to is coming up after the break. also ahead -- hold the pickles, pass the paycheck. a fast food worker will join us to weigh in on the major controversy surrounding the minimum wage. a national protest is planned later this week. will it get the conversation going now about what should be done about it. [ male announcer ] what if a small company became big business overnight? ♪ ♪ like, really big... then expanded? ♪ ♪ or their new product tanked? ♪ ♪ or not? what if they embrace new technology instead? ♪ ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim.0 from td ameritrade.

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call now to request your free decision guide. o0 c1 welcome back. today is welcome back. today is expected to be the biggest online shopping day of the year. hence, the name cyber monday. jon fortt has been tracking the numbers for us. what can you tell us about how the day's going so far? importantly, how much sales are up compared with this time last year? >> well i don't have the retail real-time data but i've got the next best thing, adobe data expecting $2.2 billion in cyber monday sales, up about 15% from last year. their predictions for

thanksgiving and black friday seem to have come in as expected. that's probably where we are. lots of doing, obviously. it's still early on the west coast, for instance. >> that's true. how much will we know about -- this idea about cyber monday we know generally e-commerce is stealing share at least expanding the category generally. how important is it whether today is up for example, 13 15, 20%? >> i think it's really important. the part that's most important is how mobile performs. the thing that's been sticking with me all day is the blue nile ceo on "squawk on the street" telling us 60% of traffic that he saw was from mobile. about 25% of revenue from mobile. so, this is gap between the people who are looking, using their mobile devices, and what they're actually buying. that's the sort of space where lots of technology companies, lots of consultcies will come in and try to close the gap. i wouldn't be surprised if three to five years we see mobile

overtaking what we think of today as the pc as the purchasing platform of choice. >> absolutely. the trend clearly in place. jon fortt, appreciate it. speaking of which, while we talk about online and mobile sales ticking up more and more brick and mortar retailers, can they stick around in this kind of environment or will they have to go quietly in the night, go the way of blockbusters, for example. joining us are a couple of analysts. welcome to you both. traditionally brick and mortar establishments have built out their online presence but what does this mean for the fate of the actual stores? >> well, i think there is no question that the big box stores are in trouble. that's really the sector that we're going to see the biggest shakeout. there are more stores in america per capita than any other country in the world. there's no question we're overstored. but does that mean that retail

is doomed? physical retail is going to go away? absolutely not because certain sectors will continue to thrive. restaurant sector branded manufacturers, companies located in the a-list malls the great properties that do continue to drive and attract traffic. they will continue to thrive. >> i think about my own hometown where downtown went from being a series of shops to cafes and restaurants. as she indicated, that seems like a place you can't lose shares to amazon. >> foot traffic is decreasing but people are going to those stores to see what they want to buy online. black friday, sales were up to 92 million people shopped online compared to 89 million. it's not looking good for retail. >> jon, that's why i wonder. if you're a traditional retail establishment, are your doors as a brick and mortar numbered?

czink >> i think it depends on what you do. restaurants aren't going anywhere. if you sell anything that closely competes with am simplon sales, your days are quickly coming up. am glon is everywhere these days, even delivering on sundays. their breadth of products cross anywhere from things with groceries, amazon fresh, to far reaches of electronics and everything in between. >> this has far-reaching implications over the next couple of years because people have seen, for example the blockbuster be replaced by a dry cleaner, but if they are going away, it's not just the shop owners who are nervous, it really means these kind of commercial spaces will have to find other tenants or it will be a tough slog. >> absolutely. and i think that's where a lot of real estate executives are looking, is what are some of these alternative uses of the real estate. is it going to be more medical offices? is it charter schools? are there -- you know, who are the tenants that will survive? particularly, those "b" and "c"

properties are really struggled. they may be anchored by office max or struggling retailers. those are the ones they have to think about what to do with that office space. >> yeah. in the meantime perhaps, some minds thinking about how to remake some of our american towns and cities in the meantime. a fascinating story to follow. appreciate your time this afternoon. >> thank you very much. >> thank you. now, cost-cutting deals these days are dwarfing web traffic. -- or drawing, web traffic we should say. there's plenty of action at cnbc.com. yes, the "cnbc.com hot list" is coming up next.

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maximize our... ready. ♪ ♪ brilliant. let's get out of here. warp speed. ♪ ♪ welcome welcome back. a new week on wall street, new batch of stories drawing eyeballs on our website. a look at what's leading the hot list. >> we just had a little excitement here on the website. you know that market downturn you've been talking about, the slide? check this out. we had at least about 6,000, 7,000 people just dive right into the site right into our market coverage, giving us a nice boost at the market close. a little excitement here. now the best stories that we've got right now, right now our best story is actually a question. did amazon just pull off the best pr stunt ever? because that's remarkable timing that mr. bezos goes on "6 0

minutes" and starts this drone buzz as we go into cyber monday. we asked a few experts about it. our very own katie little put it together in a feature story and readers are heating up at about 60 people a minute right now. number two on the list, an interview earlier with david costa of goldman sachs. he said, 2014 probably hit s&p 1900 but you may have a 10% correction in there somehow. that's obviously getting attention of the readers. i think they're coming to check out the market and say holy cow, what is this guy saying? next stronger story, warren buffett, always a big pull for us, mr. buffet. a nice little story about him. he doesn't even want his old berkshire hathaway headquarters. they're trying to get rid of it in new bedford, massachusetts. apparently no one wants it but the mayor is going to try to get someone excited about it. those are the top ones. >> i can see them try to turn it into a landmark. i want to go back to the first

story about the drone and amazon. in other words, if i'm jeff bezos trying to draw attention to what i'm doing, why not come out with the octocopter and get everyone talking about it? it is actually ingenious. >> the experts we talked to with that amazon buzz you get amazon top of mind. all of a sudden you're thinking about your christmas list, you say, i saw that story about drone copters -- >> is there really a one-to-one connection? >> ad experts say it's top of mind. >> thank you for joining us. coming up, fast good workers are planning a nationwide protest thursday. they're upset about the minimum wage. one will join us to state his case. keep it right here.

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[ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. welcome welcome back. fast food strikers will be working again, at least for the day. on thursday it's expected 100 cities nationwide will have much slower fast food when their workers walk off to protest making minimum wage. currently $7.25 an hour or not much above it. they want a raise to $15 an hour. the national restaurant

association calling it a publicity stunt. joining me devonte yates from milwaukee, wisconsin, making $7.25 an hour and will be striking on thursday. good afternoon and thank you for being here. >> thank you for having me. >> can you tell us a little bit about why you're deciding to walk off the job on thursday? >> well, i decided to walk off my job on thursday, quite simply, to show the corporation that i work for, mcdonald's and to show other people that fast food workers aren't just you know, simple people. like, we have lives, too. by me walking off the job i'm going to show my corporation without us hard working individuals, their companies wouldn't be able to thrive as they do. by us going on a strike and showing them that, you know, we too can come together and have power, we can, you know negotiate things. we can talk about things and that, you know. >> sure. >> there has to be a gap closed between us. like i said, if it wasn't for

us, these companies wouldn't make as much money as they do. i believe they should be able to pay us more so we can live our lives and be happy. >> how much of this comes down to a decision made by your direct bosses, your managers and how much goes back to the federal minimum wage or mcdonald's as a corporation? >> mcdonald's as a corporation has, you know, has well over enough money to pay their workers, you know, pay us what we deserve. you know, it's not, you know regarding the federal minimum wage, that can be raised. two, these corporations know they have enough money to pay us. it doesn't have to be a federal level. it can be on a corporation level. >> i mean, have you asked for a raise before? >> i have. by myself. i was pretty much told you know, it's going to come eventually. just wait. >> you make $7.25 minimum wage now. how long have you been earning that wage? >> i've been earning that wage since i started about six, seven

months ago. >> okay. and are you expecting that your pay will increase in the months ahead or are you hoping will increase or are you only hoping to this v this job for a short period of time? >> i'm hoping to have the wages increased. we should be able to get our raises because we do what the corporation corporations ask of us and we do it well. >> do you get health benefits? >> not at all. >> is it because you work less than 30 hours a week? >> i work more than 30 hours a week. >> have you tried to look for other work? >> i have tried to look for other jobs and other higher paying jobs. a job is not going to call you overnight so i have to stick to what i have.

>> really appreciate devonte calling now. >> it's smart business. okay? to increase it. these people these minimum wage people are the human representation of this brand, of mcdonald's, of walmart. it makes a lot of sensement look what ford did. he increased his workers' wages by 100% and those people were buyers of the ford brand for generations. i think it goes a long way in

terms of branding. >> it's a highly competitive industry. brand loyalty is something that you definitely have to consider. more important, people have to have a living wage. so that's something that needs to be considered as well. and and. >> we know that that ratio of profits to labor is actually at historic highs.

now would be the time would it not to redress this? >> unfortunately. i think it's going to backfire. what you will find is low wage jobs get outsourced and automated. if you're costco you can pay higher wages because you have a value proposition. so it's not always about the lowest cost. i don't know who has a bigger pr problem. we're soon going to find out. >> what we're basically saying to retailers is go ahead and pay people a higher wage even though you don't have to. it's up to them to say why should we? >> let's face it. these are low skilled workers. he wants a raise after six months of work. >> he doesn't necessarily want a

raise, he wants to make enough money that he can live off of. there is is a difference between a living wage and a raise. >> i understand but ultimately if you want to reduce this down to stock value, no one is going to pay $10 for a hamburger. this is not going to happen. >> if it increases that cost basis it will drive more innovation and not necessarily increase prices for the consumer. >> then pay him $30. what is enough? he is a low skilled worker. and you look at it, he is replaceable from somebody else down the street. their job is to get the share price higher not pay a living wage. >> higher wages means less labor and less money. >> maybe we're at a different point. guys thank you very much for the debate. this is an extremely important issue.

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of your trading. >> here are some of the tweets we have been getting in today.

amazon just found another reason not to post any profits for the next decade. drone delivery? how do they assure there is not a small bomb delivered to your home? >> how could they deliver a bomb. >> who doesn't want a little drone? how cool is that. >> a lot of people making the point that that job used to be an entry level or position that you move up and move into a different industry from. >> there is no other job. what we didn't know is what he did six months ago.

>> want to clarify mcdonald's does offer benefits franchise by franchise. >> we have not seen any walkouts that we're going to see and that may catch fire. >> thank you so much for joining us. we will continue to think through the market melt down. hope the rest of you have a great day. "fast money" will start in a couple of seconds. >> you might have noticed that go go was up 17%. they got permission to install

satellite capability. it's a big step to offering go go wifi on international flights. >> planes are no longer a refunl. >> "no more. fast money starts right now. here is tonight's line up. feel like you have missed the run in? stocks have four ways to make you money before the end of the year. a 3d printing stock is getting a pop today. up veils a full color printer. discussi